Income tax in Spain
Are you in Spain for more than six months (183 days) of the calendar year or are your main economic interests in Spain?
If the answer is yes, then you are considered a tax resident in Spain.
As a tax resident, you will be obliged to pay Spanish tax on your worldwide income and assets and will be required to file a Spanish income tax return.
Your income tax return, now over videoconference
Do you need to file your tax return, but simply cannot find the time to come to one of our offices? At Pellicer & Heredia you can now file your tax return via a simple videoconference. In a matter of seconds you will be connected and one of our experts will attend to you, reviewing your documents in the same way as you would in a face-to-face meeting.
Once your appointment is confirmed, you will receive an email with the date and time, along with a link to access the conference. Please note that registration is not required. When it is time for your appointment, simply click on the link provided and you will be connected instantly.
Save money in your income tax return Renta in Spain
Questions about your personal income tax in Spain
At Pellicer&Heredia, we respond to your concerns with clarity and precision. Below you will find answers to common questions about how to file your income tax return in Spain. Our goal is to simplify the tax process and ensure you are informed and confident every step of the way.
Is it compulsory to file a tax return in Spain?
There are exceptions, which we highlight below:
22,000 euros of earned income and pensions, including income from abroad.
This limit is reduced to 15,876 euros in the following circumstances:
- The income has not been taxed at source (Spain).
- The income comes from more than one source (e.g. two jobs or two pensions, or one of each). If the other sources add up to EUR 2,500 or less, you can still benefit from the EUR 22,000 exemption.
However, the declaration becomes compulsory in certain circumstances, regardless of how low your income is, for example:
- If you are entitled to double taxation
- If you are entitled to a refund
- If you have made pension contributions
- If you claim deductions for the purchase of your main residence.
- If you have capital gains or income above certain limits.
Types of income
Here are 5 types of income:
- Earned income (employment, pensions).
- Investment income (interest, dividends).
- Income from real estate (rentals, second homes).
- Income from economic activities.
- Capital gains (lottery, gambling, sale of assets such as housing, shares, etc.)
Personal allowance 2024 (Valencian Community)
- Minimum: 6,105 euros
- Over 65s: 7,370 euros
- Over 75 years of age: 7,645 euros.
In addition, income from work and pensions have a minimum exemption of 2,000 euros.
There is another reduction of 7,302 euros when income is less than 14,852 euros, and it disappears progressively until income exceeds 19,747.50 euros.
Spain is divided into 17 autonomous communities, and taxes are shared between the state and regional governments, with each autonomous community deciding its own tax rates and obligations, so the amount of income tax you pay depends on where you live. Below are the state brackets and the rates applied to the general tax base:
What's new in 2024
- Deduction of 30% of expenses related to the care of individuals affected by any mental health-related condition, up to a maximum of 150 euros.
- Deduction of 30% of expenses arising from the purchase of products, services, and treatments related to non-cosmetic oral health, up to a maximum of 150 euros.
- Deduction of 30% of amounts paid during the tax period for expenses related to sports and health activities, up to a maximum of 150 euros.
General Taxable Base 2024
- Up to 12,450: 19%
- Next 20,199: 24%
- Next 35,199: 30%
- Next 59,999: 37%
- Next 299,999: 45%
- Over 300,000: 47%
Tax savings amount 2024
- Up to 6,000: 19%
- Rest 44,000: 21%
- Rest 150,000: 23%
- Rest 100,000: 27%
- Over 300,000: 30%
Savings income includes income from interest, dividends, life insurance, annuities acquired (not annuities acquired with pension funds) and capital gains from the sale or transfer of assets (not real estate).
Most important deductions
- 50% of the amounts invested in newly created companies up to a maximum deduction of 100,000 euros provided that no more than 40% of the company is owned (state deduction).
- Deduction for double taxation (state deduction)
- 10% of the amounts donated to legally recognised foundations (state deduction)
- For large families: in general (3 or more children) 1,200 euros (state deduction); and probably the region includes an additional deduction as in the case of the Valencian Community.
- For families with multiple children (5 or more): 2,400 euros (state deduction).
- For renting a main residence, on the amounts paid during the tax period (deduction for the Valencian Community):
- 20%, with a limit of 800 euros.
- 25%, up to a limit of 950 euros if the tenant is under 35 years of age.
- 40% of the amount of the amounts invested in electricity self-consumption installations in the main residence with a maximum deduction of 8,800 euros (Community of Valencia deduction).
- With effect from 30th June 2023, a new state deduction for the purchase of electric vehicles is approved in the 58th additional provision of the Personal Income Tax Law, introduced by Royal Decree-Law 5/2023 of 28 June (BOE of 29 June) 2023. One of the following alternatives is available:
– If the vehicle is purchased between 30th June 2023 and 31st December 2024, the deduction can be taken in the tax period in which the vehicle is registered.
– If amounts are paid between 30th June 2023 and 31st December 2024 on account of the future purchase of the vehicle, amounting to at least 25% of the acquisition value, the tax credit can be taken in the tax period in which this amount is paid, the remainder must be guaranteed and the vehicle must be purchased before the end of the second tax period immediately following that in which the payment of this amount was made, i.e. in 2025 (if the 25% payment was made in 2023) or 2026 (if it was made in 2024).
In both cases, the basis for the deduction is made up of the purchase price of the vehicle, including the expenses and taxes inherent to the purchase, and does not include amounts subsidised or to be subsidised through a public aid programme.
The base of the deduction then calculated may not exceed 20,000 euros.
- Deduction for energy efficiency improvement works on homes
- The deduction for work to reduce heating and cooling demand may be applied to amounts paid for work carried out up to 31sts December 2024 on the main residence or any other property owned by the taxpayer that is rented for use as a home at that time or in the expectation of being rented, provided that, in the latter case, the property is rented before 31st December 2025. Deduction of 20%.
- The deduction for works to improve the consumption of non-renewable primary energy can be applied to the amounts paid for works carried out up to 31st December 2024 on the main residence or any other property owned by the taxpayer that is rented for use as the main residence at that time or in the expectation of rental, provided that, in the latter case, the property is rented before 31st December 2025. Deduction of 40%.
- The deduction for work carried out on predominantly residential buildings may be applied for the amounts paid for such work up to 31st December 2025. Deduction of 60%.
This last deduction will be applied in the tax periods 2021, 2022, 2023, 2024 and 2025 in relation to the amounts paid in each of them.
For more information: please do not hesitate to contact our multidisciplinary professional firm specialised in taxation. At Pellicer & Heredia we can analyse your tax situation on a personalised basis, as well as carry out a tax planning study in accordance with your needs.
TAX DEDUCTIONS 2024
- For investment in habitual residence (Mortgages prior to 2013)
- For rental of main residence (A lease contract and payment via transfer or Bizum is essential) (NO CASH)
- Deductions for incentives and stimuli for business investment. Taxpayers may fully deduct from the total state tax liability the amount corresponding to the deduction for investment in newly or recently created companies, as regulated by Article 68.1 of the Personal Income Tax Law.
- Deductions for donations and other contributions
- Deduction for income obtained in Ceuta or Melilla
- Deduction for actions to protect and promote the Spanish Historical Heritage and World Heritage
- Deduction for rental of habitual residence. Transitional regime
The amount of these deductions is distributed as follows:
• 50% of the total amount reduces the state tax liability.
• 50% of the total amount reduces the regional tax liability.
The following deductions were introduced on October 6, 2021, on a temporary basis, applying in 2021, 2022, 2023, and 2024 for the first two, and the third extends to 2025:
- Deduction for improvement works that reduce heating and cooling demand.
- Deduction for improvement works that reduce non-renewable primary energy consumption.
- Deduction for energy rehabilitation works in predominantly residential buildings.
How do these 3 deductions work?
Type of eligible housing:
Main residence: 1 and 2
All types of housing except those used for economic activities: 3
Timeframe to carry out and pay for the works:
From 06/10/2021 to 31/12/2024 (1 and 2)
From 06/10/2021 to 31/12/2025 (3)
When can I apply the deduction?
In the tax year in which the energy efficiency certificate is issued.
If payments are made before the certificate is issued, they are all included in the year in which the deduction is claimed. The certificate (after the works) must be issued before 01/01/2025 (1 and 2). For deduction 3, the certificate must be issued before 01/01/2026.
Requirements for obtaining the energy efficiency certificate:
At least 7% reduction in the sum of heating and cooling demand indicators (certificate after the works compared to before) (1)
At least 30% reduction in non-renewable primary energy consumption or an “A” or “B” energy rating (certificate after the works compared to before) (2 and 3)
Applicable deduction percentage:
20% (1)
40% (2)
60% (3)
Deduction base:
Amounts paid for the works by any means excluding legal tender (cash).
Costs related to installing or replacing fossil fuel-based systems are not included.
Public subsidies received are deducted from the base.
Deduction for the purchase of plug-in electric and hydrogen fuel cell vehicles and charging stations
Effective from June 30, 2023, two new deductions were introduced, applicable until December 31, 2024:
- Deduction for the purchase of new plug-in electric or hydrogen fuel cell vehicles.
- Deduction for installing electric vehicle charging stations.
- For birth, adoption, or family fostering: €300 per child.
- For multiple births or adoptions: €246 per multiple birth or two or more adoptions in the same tax year.
- For birth or adoption of children with disabilities: €246 per child with physical or sensory disability ≥65% or mental disability >33%.
- For large or single-parent families: €330 (general category) and €660 (special category).
- For non-occasional custody in nurseries and early childhood centers: 15% deduction for childcare expenses for children under three.
Requirements:
- Parents or guardians living with the child must be employed or self-employed.
- Combined taxable base must not exceed:
- €30,000 for individual declaration
- €47,000 for joint declaration
- For work-life balance: €460 per child in permanent foster care, aged 3–5 years. (ONLY FOR MOTHERS OR FEMALE GUARDIANS)
- For taxpayers with disabilities: Degree ≥33%, age ≥65. (€197)
- For elderly dependents over 75 or over 65 with disabilities. (€197)
- For permanent hiring of registered domestic employees for dependent care. (50% of Social Security contributions paid)
- For income from renting out a home: 5% deduction for the landlord.
- For first-time purchase of main residence by individuals aged ≤35: 5%
- For main residence purchase by people with disabilities: 5%
- For public aid used to purchase or renovate a main residence: €112
- For renting or paying to use the main residence.
- For renting a home due to employment in another municipality: 10%
- For investment in self-consumption or renewable energy installations: 40% (main residence), 20% (second homes)
- For ecological donations: 20% up to €150 and 25% on the rest
- For donations of Valencian Cultural Heritage assets: 20% up to €150 and 25% on the rest
- For donations for preservation/restoration of Valencian Cultural Heritage. 20% up to €150 and 25% on the rest
- For amounts used by owners for conservation/restoration of Valencian Cultural Heritage assets. 20% up to €150 and 25% on the rest
- For donations to promote the Valencian language. 20% up to €150 and 25% on the rest
- For donations or lending of use for cultural, scientific, or non-professional sports purposes
- For taxpayers with two or more children: 10% of the regional tax liability
- For increase in financing costs of main residence investment: 50% of the positive difference between this year’s and last year’s payments
- For school supplies: €110 per child
- For maintenance or improvement works in the main residence
- For living in a depopulated municipality: €330 + possible increase
- For fertility treatments in authorized clinics: €100
- For certain healthcare expenses:
- Up to €100 for treatment of complex or rare chronic diseases, or care for patients with acquired brain injury or Alzheimer’s
- 30% of expenses (up to €150) for non-cosmetic dental health products, services, or treatments
- Expenses related to mental health care (up to €150)
- Expenses for corrective lenses, contact lenses, and cleaning solutions (up to €100)
- For expenses related to sports and healthy activities:
- 30% of the expenses during the tax year
- If taxpayer is ≥65 or has ≥33% disability: 50%
- If taxpayer is ≥75 or has ≥65% disability: 100%
- Maximum deduction: €150
The amount of these deductions is fully applied to reduce the regional tax liability.
The taxpayer must keep receipts for any deductions claimed for verification by the tax authorities.
This deduction has been in effect since January 1, 2018, for income tax (IRPF) payers who are part of a family unit in which one member resides in another EU or EEA country, preventing them from filing jointly. This deduction adjusts the tax liability to what it would have been if all family members had been Spanish tax residents and filed jointly. The amount is not split 50/50 between state and regional tax, but reduces both in the manner specified by the 48th additional provision of the IRPF law.
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